HP Revenues Up Just 1.7 Percent as PC Sales Slowdown Continues

HP reported its most recent quarterly and annual financial results, and the PC maker is still struggling to get consumers to upgrade. It now says that the long-awaited PC market rebound won’t happen until the second half of 2025.

HP reported a net income of $900 million on revenues of $14.1 billion in the quarter ending October 31, 2024. Those figures represent a 7 percent decline and a gain of 1.7 percent year-over-year (YOY), respectively. And because this was the final quarter of fiscal 2024, the firm also reported its annual earnings: A net income of $2.8 billion on revenues of $53.6 billion in revenues; those figures represent a decline of 15 percent and a gain of 1.7 percent YOY, respectively.

“We are pleased with our Q4 performance where we saw revenue growth for the second consecutive quarter, driven by steady progress in Personal Systems and Print,” HP president and CEO Enrique Lores said. “With momentum heading into FY25, we are well-positioned to capitalize on the commercial opportunity and lead the future of work.”

HP has two top-level business units, Personal Systems, which is responsible for its PCs, and Print, which sells printers and related products.

Personal Systems delivered revenues of $9.6 billion in the quarter, up 2 percent YOY, with an operating margin of 5.7 percent. For the full year, Personal Systems provided revenues of $36.2 billion, up 1 percent YOY. In both cases, Personal Systems represents about 68 percent of HP’s total revenues.

HP says that AI PCs–which include models sold with AMD, Intel and Qualcomm (Arm) processors–were over 15 percent of all its PC shipments in the quarter and that it is the biggest seller of AI PCs (and the second-biggest seller of PCs overall). The firm earns roughly twice as many revenues from commercial PCs as it does from consumer PCs–$6.5 billion vs. $3.1 billion in the most recent quarter–with the former growing 2 percent and the latter down by 4 percent YOY. Overall PC unit sales were up just 1 percent YOY. Commercial PC unit sales were up 4 percent in the quarter, while consumer PC unit sales fell 3 percent YOY.

Print added revenues of $5.4 billion in the quarter, up 1 percent, with an operating margin of 19.6 percent. For the full year, Printing provided $17.3 billion in revenues, a decline of 4 percent YOY.

Looking to the future, HP said that it expects its FY 2025 revenues to grow in-line with the overall market, but that disappointed investors looking for the long-awaited PC industry rebound.